STOCKHOLM
,
January 26, 2022
(press release)
–
As of January 1, 2022, Essity’s business areas are Health & Medical, Consumer Goods and Professional Hygiene. These are aligned with the company’s customer and sales channels and will lead to an expansion of the offerings to new and adjacent categories as well as extended service content on the basis of customer and consumer needs. The new areas support the company’s new sales growth target through strategies for organic and acquisition-driven growth and aim to achieve higher growth and profit margins as well as less capital tied up. The business areas replace the former business areas Personal Care, Consumer Tissue and Professional Hygiene. Business areas: Health & Medical Health & Medical encompasses the Incontinence Products Health Care and Medical Solutions categories. The offering includes incontinence products, wound care, compression therapy, orthopedics, skincare products and digital solutions with sensor technology under brands such as TENA, Leukoplast, Cutimed, JOBST, Actimove and Delta-Cast. Distribution channels for the products are pharmacies, medical devices stores, hospitals, distributors and care institutions as well as online. Consumer Goods Consumer Goods includes the categories of Incontinence Products Retail, Baby Care, Feminine Care and Consumer Tissue. The offering includes incontinence products, pads, diapers, wet wipes, skincare products, intimate soaps, washable absorbent underwear, menstrual cups, toilet paper, household towels, handkerchiefs, facial tissues and napkins. Products are sold under brands such as the globally leading TENA brand and other strong brands including Libero, Libresse, Nosotras, Saba, TOM Organic, Lotus, Regio, Tempo and Vinda. Distribution channels for the products are the retail trade and online. Professional Hygiene Professional Hygiene comprises complete hygiene solutions, including toilet paper, paper hand towels, napkins, hand soap, hand lotion, hand sanitizers, dispensers, cleaning and wiping products, as well as service and maintenance under the globally leading Tork brand. Essity also offers digital solutions, such as Internet of Things sensor technology, enabling data-driven cleaning. Customers consist of companies and office buildings, universities, healthcare facilities, industries, restaurants, hotels, stadiums and other public venues. Distribution channels for the products consist of distributors and online. Financial reporting proforma Essity’s business area reporting proforma for net sales, organic sales growth, adjusted gross margin1), adjusted EBITA1), adjusted EBITA margin1), adjusted ROCE1), operating cash flow and capital employed has been restated for the periods below: 1) Excluding items affecting comparability
Net sales, SEKm
2019
2020
2021
2021:1
2021:2
2021:3
2021:4
Health & Medical
22,075
21,170
21,685
5,004
5,255
5,572
5,854
Consumer Goods
76,169
75,146
74,040
17,309
17,577
18,310
20,844
Professional Hygiene
30,731
25,418
26,143
5,216
6,140
7,260
7,527
Other
-
18
-1
-1
-4
3
1
Total
128,975
121,752
121,867
27,528
28,968
31,145
34,226
Net sales by category, %
2021
Health & Medical
18%
Incontinence Products Health Care
11%
Medical Solutions
7%
Consumer Goods
60%
Consumer Tissue
40%
Incontinence Products Retail
6%
Feminine Care
7%
Baby Care
7%
Professional Hygiene
22%
Organic sales growth, %
2020
2021
2021:1
2021:2
2021:3
2021:4
Health & Medical
-1.8%
5.4%
-4.6%
13.4%
7.3%
6.9%
Incontinence Products Health Care
2.5%
2.1%
-5.4%
2.1%
5.6%
6.8%
Medical Solutions
-8.2%
10.8%
-3.3%
35.4%
9.7%
7.1%
Consumer Goods
3.2%
1.8%
-4.4%
3.7%
2.9%
5.7%
Consumer Tissue
4.1%
0.5%
-3.1%
-0.2%
-0.6%
5.5%
Incontinence Products Retail
3.0%
5.7%
-7.1%
14.1%
13.0%
5.5%
Feminine Care
5.0%
10.0%
-0.1%
11.0%
15.8%
15.3%
Baby Care
-2.5%
-0.6%
-12.2%
12.4%
1.5%
-1.3%
Professional Hygiene
-14.6%
5.7%
-27.5%
26.1%
20.7%
16.4%
Group
-1.9%
3.3%
-9.9%
9.5%
7.4%
8.0%
Adjusted gross margin1), %
2019
2020
2021
2021:1
2021:2
2021:3
2021:4
Health & Medical
42.4%
43.4%
42.3%
44.8%
43.2%
42.4%
39.2%
Consumer Goods
27.0%
31.4%
27.0%
31.1%
28.2%
26.4%
23.0%
Professional Hygiene
26.8%
26.9%
23.3%
23.7%
25.7%
24.0%
20.4%
Group
29.5%
32.5%
28.9%
32.2%
30.4%
28.7%
25.2%
Adjusted EBITA1), SEKm
2019
2020
2021
2021:1
2021:2
2021:3
2021:4
Health & Medical
3,734
3,668
3,821
920
950
1,024
928
Consumer Goods
8,333
11,538
7,938
2,473
1,967
1,832
1,665
Professional Hygiene
4,463
3,317
2,710
419
710
900
681
Other
-690
-897
-789
-204
-218
-170
-197
Total
15,840
17,626
13,680
3,608
3,409
3,586
3,077
Adjusted EBITA margin1), %
2019
2020
2021
2021:1
2021:2
2021:3
2021:4
Health & Medical
16.9%
17.3%
17.6%
18.4%
18.1%
18.4%
15.9%
Consumer Goods
10.9%
15.4%
10.7%
14.3%
11.2%
10.0%
8.0%
Professional Hygiene
14.5%
13.0%
10.4%
8.0%
11.6%
12.4%
9.0%
Group
12.3%
14.5%
11.2%
13.1%
11.8%
11.5%
9.0%
Adjusted ROCE1), %
2019
2020
2021
2021:1
2021:2
2021:3
2021:4
Health & Medical
12.2%
11.9%
12.7%
12.4%
12.6%
13.8%
12.1%
Consumer Goods
13.6%
19.4%
12.8%
17.0%
13.1%
11.6%
10.0%
Professional Hygiene
18.9%
14.6%
11.8%
7.7%
12.7%
15.3%
11.1%
Group
13.8%
15.7%
12.0%
13.5%
12.4%
12.3%
10.1%
Operating cash flow, SEKm
2019
2020
2021
2021:1
2021:2
2021:3
2021:4
Health & Medical
3,550
4,141
3,832
732
755
1,307
1,038
Consumer Goods
7,815
9,799
6,328
1,957
927
1,640
1,804
Professional Hygiene
4,938
3,183
2,512
-29
655
1,132
754
Other
-664
-1,105
-1,554
-384
-377
-403
-390
Total
15,639
16,018
11,118
2,276
1,960
3,676
3,206
Capital employed, SEKm
2019
2020
2021
2021:1
2021:2
2021:3
2021:4
Health & Medical
30,362
28,642
31,401
30,734
29,618
29,931
31,401
Consumer Goods
61,251
57,146
66,939
58,994
61,040
65,827
66,939
Professional Hygiene
22,996
20,915
24,518
22,607
22,305
24,595
24,518
Other
-868
-673
1,082
-5,092
-281
567
1,082
Total
113,741
106,030
123,940
107,243
112,682
120,920
123,940
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